Acacia Research (NASDAQ:ACTG) Releases Quarterly Earnings Results, Beats Expectations By $0.14 EPS

Acacia Research (NASDAQ:ACTG) released its quarterly earnings results on Thursday. The business services provider reported $0.04 EPS for the quarter, beating the consensus estimate of ($0.10) by $0.14, FiscalAI reports. Acacia Research had a negative net margin of 5.39% and a positive return on equity of 0.44%. The business had revenue of $54.45 million for the quarter, compared to analyst estimates of $45.50 million.

Here are the key takeaways from Acacia Research’s conference call:

• Acacia reported third-quarter revenue of $54.4 million, down from $59.4 million a year earlier, and a $5.6 million GAAP net loss; adjusted net income was $4.3 million. Operating segments excluding intellectual property generated $11.6 million of adjusted EBITDA.
• Benchmark’s initial Cherokee well continued to outperform expectations, and its newly drilled second well had encouraging early results. A non-recourse financing facility of up to $47.5 million will fund an initial four-well Cleveland development program, though the second well is still in early flowback.
• Deflecto revenue declined to $27.2 million from $30.8 million year over year, while adjusted EBITDA fell to $1.0 million from $2.6 million, amid soft housing-related demand and higher input costs. Management said profitability improved in September and cited cost and operational changes, but a broader recovery remains dependent on demand.
• Acacia ended the quarter with $346.3 million in cash, securities, and loans receivable and no parent-company debt. Its public securities portfolio generated $8.2 million in realized gains during the quarter, while management said it is pursuing acquisition opportunities in both private and public markets.
• The intellectual property segment generated about $300,000 in licensing revenue and recorded $2.5 million of adjusted EBITDA losses, with no paid-up license revenue in the quarter. Management described licensing as episodic, expressed confidence in remaining portfolio value, and said it has reduced the segment’s overhead.

Acacia Research Trading Down 3.0%

Shares of NASDAQ ACTG traded down $0.13 during midday trading on Thursday, reaching $4.23. 453,170 shares of the stock were exchanged, compared to its average volume of 141,962. The company has a market capitalization of $412.81 million, a P/E ratio of -28.20 and a beta of 0.60. Acacia Research has a 52-week low of $3.43 and a 52-week high of $5.27. The company has a current ratio of 4.76, a quick ratio of 4.51 and a debt-to-equity ratio of 0.11. The stock has a 50 day moving average price of $4.37 and a 200-day moving average price of $4.52.

Analyst Upgrades and Downgrades

Separately, Weiss Ratings reiterated a “sell (d-)” rating on shares of Acacia Research in a report on Friday, August 7th. One analyst has rated the stock with a Buy rating and one has given a Sell rating to the company’s stock. According to MarketBeat.com, the stock has an average rating of “Hold” and an average price target of $6.00.

Insider Buying and Selling at Acacia Research

In related news, Director Isaac Kohlberg sold 24,000 shares of the company’s stock in a transaction that occurred on Tuesday, September 15th. The shares were sold at an average price of $4.55, for a total transaction of $109,200.00. Following the transaction, the director owned 54,310 shares of the company’s stock, valued at approximately $247,110.50. This represents a 30.65% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at the SEC website. 1.74% of the stock is currently owned by corporate insiders.

Acacia Research Company Profile

Acacia Research Corporation is an investment and intellectual property company headquartered in Irvine, California. The company acquires businesses, assets and patent portfolios that it believes have the potential to generate value through licensing, monetization, operational improvement or strategic transactions.

Historically, Acacia has been primarily known for its patent licensing business. Through subsidiaries and affiliated entities, it has acquired rights to patented technologies, worked with inventors and patent owners, and pursued licensing agreements with companies that use those technologies.